Category: News

Puerto Rico's governor submitted a revised fiscal plan overnight Thursday that estimates the U.S. Caribbean territory's economy will shrink by 11 percent and its population drop by nearly 8 percent next year. The proposal doesn't set aside any money to pay creditors in the next five years as the island struggles to restructure a portion of its $73 billion public debt. The original plan had set aside $800 million a year for creditors, a fraction of the roughly $35 billion due in interest and payments over the next decade. The five-year plan also assumes Puerto Rico will receive at least $35 billion in emergency federal funds for post-hurricane recovery and another $22 billion from private insurance companies. Some analysts view that assumption as risky given that the U.S. Treasury Department…

Gulf Arab officials used the World Economic Forum in Davos on Wednesday to slam Iran for what they said was its destabilizing behavior in the region, taking advantage of Tehran's conspicuous absence at the annual event. Iranian Foreign Minister Mohammad Javad Zarif had been a regular presence at the annual forum that brings together top politicians, CEOs and bankers, and he often clashed with his Gulf Arab counterparts at competing sessions. But this year, he did not show. As a result, the platform was wide open for Saudi Arabia, the United Arab Emirates and Bahrain to criticize Iran. Iran, the leading Shiite Muslim power, and Sunni Muslim Saudi Arabia, a key U.S. ally, are rivals for influence in the Middle East, where they support opposing sides in Yemen, Syria, Iraq and Lebanon. "In the Middle East, we have two competing…

Toys R Us, a nostalgic favorite even as many shoppers moved to Amazon and huge chains like Walmart, plans to close up to 182 stores, or about 20 percent of its U.S. locations. The company that once dominated toy sales in the U.S. has been operating under bankruptcy protection since last fall, when it filed for Chapter 11 under the weight of $5 billion in debt. Toys R Us operates about 900 stores in the U.S., including Babies R Us stores. Loyal fans lamented the closing of their hometown stores. Many said they liked to shop at Toys R Us because of the atmosphere and the variety of toys they found. "It's an experience," said Bryan Likins of Indianapolis, who takes his 4-year-old daughter to Toys R Us. "She likes…

Protesters have been pouring into the streets in several Swiss cities to express opposition to U.S. President Donald Trump's attendance at this week's World Economic Forum in Davos. Trump arrives Thursday in the Swiss ski resort and is slated to present his "America First" message in a speech Friday to global business and political leaders. On the eve of his arrival, members of Trump's economic team previewed the strategy for increasing U.S. global competitiveness. Treasury Secretary Steve Mnuchin, one of 10 Cabinet secretaries attending the gathering, endorsed a lower dollar, pushing the greenback to its lowest level in three years, according to the Bloomberg Dollar Index. "Obviously, a weaker dollar is good for us as it relates to trade and opportunities," Mnuchin told reporters at Davos. A day after Trump…

The Trump administration is set to announce a raft of trade decisions over the next months, ranging from curbs on foreign imports of steel and aluminum to steps to clamp down on China's alleged theft of intellectual property. U.S. President Donald Trump has stressed his "America First" agenda in his first year in office and called for fairer, more reciprocal trade. He has blamed globalization for ravaging American manufacturing jobs as companies sought to reduce labor costs by relocating to Mexico and elsewhere. Imported washing machines, solar panels In its first major trade decision of the year, the administration slapped steep tariffs on imported washing machines and solar panels, boosting Whirlpool Corp. and dealing a setback to the renewable energy industry. Monday's decision imposed a 20 percent tariff on the first…

Europe's economy is on a roll — raising the question of exactly when the European Central Bank will end its extraordinary stimulus efforts. Bank President Mario Draghi will be at pains this week to leave that point open. No changes in stimulus settings or interest rates are expected at Thursday's meeting of the bank's 25-member governing council, which sets monetary policy for the 19 countries that use the euro. Draghi's post-meeting news conference, however, will be closely scrutinized for any hints of a change in the timetable for withdrawing a key stimulus component — a massive bond-buying program — later this year. Here is a fast guide. Where's inflation? Stubbornly low inflation is why Draghi and his ECB colleagues want to keep the stimulus program running. The bank's mission is…

President Donald Trump on Tuesday signed into law a steep tariff on imported solar panels, a move billed as a way to protect American jobs but which the solar industry said would lead to tens of thousands of layoffs. The following are some questions and answers about the decision: What impact will the decision have on the solar industry? Trump has said the tariff will lead to more U.S. manufacturing jobs, by preventing foreign goods that are cheap and often subsidized from undercutting domestic products. He also expects foreign solar panel producers to start manufacturing in the United States. "You're going to have people getting jobs again and we're going to make our own product again. It's been a long time," Trump said as he signed the order. The main…

A trade group representing U.S. auto parts makers on Monday urged the Trump administration to adopt NAFTA automotive rules that cover research, engineering, design and software development work as part of North American regional value content goals. The proposal from the Motor and Equipment Manufacturers Association (MEMA) was sent to U.S. Trade Representative Robert Lighthizer as a sixth round of negotiations to revise the North American Free Trade Agreement began in Montreal. U.S. demands for sweeping changes to automotive content rules are among the most contentious issues in the NAFTA talks, including a requirement that half the value of all North American vehicles come from the United States and a far higher content requirement of 85 percent from North America. Canada and Mexico have said the U.S. targets are unworkable,…

China invited Latin American and Caribbean countries to join its "One Belt, One Road" initiative on Monday, as part of an agreement to deepen economic and political cooperation in a region where U.S. influence is historically strong. Chinese Foreign Minister Wang Yi said the region was a natural fit for the initiative, which China has leveraged to deepen economic and financial cooperation with developing nations. "China will always stay committed to the path of peaceful development and the win-win strategy of opening up and stands ready to share development dividends with all countries," Wang said at a meeting between China and 33 members of the Community of Latin American and Caribbean States (CELAC). Representatives from China and CELAC signed a broad agreement to expand ties in the second time China…

The EU’s justice commissioner is working on a proposal that could oblige member states such as Poland, which has clashed with Brussels over reforms to its courts, to pass tests on the independence of their judicial systems before receiving funding. Vera Jourova said there was agreement within the executive European Commission to work on ideas to encourage strong judiciaries in planning for the new budget from 2021. “One way could be to insist that independent justice systems are necessary for effective control of the use of EU funds,” she said. “I would like to propose that link.” Seven-year budget plan A Commission spokesman said on Monday the work by Jourova was part of broader preparations for a new, seven-year EU budget plan, due to be published in May, and was…

The International Monetary Fund says the global economy grew at a faster than expected 3.7 percent pace in 2017 and will do better this year and next. IMF Managing Director Christine Lagarde called predictions of strengthening growth "very welcome news." She spoke Monday in Davos, Switzerland, at the annual World Economic Forum. IMF experts say 120 nations, representing three-quarters of the global economy, saw growth last year. IMF experts said tax cuts in the United States will have a positive but "short term" impact on the economy. Lagarde urged political and economic leaders to take advantage of good times to make reforms that will soften the impact of the next, inevitable, economic downturn. She said there is "significant" uncertainty in the year ahead, where a long period of low interest…

Some in the U.S. solar-power industry are hoping a decision this week by President Donald Trump doesn't bring on an eclipse. Companies that install solar-power systems for homeowners and utilities are bracing for Trump's call on whether to slap tariffs on imported panels. The solar business in the U.S. has boomed in recent years, driven by falling prices for panels, thanks in part to cheap imports. That has made solar power more competitive with electricity generated from coal and natural gas. A green-technology research firm estimates that tariffs could cost up to 88,000 U.S. jobs related to installing solar-power systems. On the other side are two U.S. subsidiaries of foreign companies that argue the domestic manufacturing of solar cells and modules has been decimated by a flood of imports, mostly…

The exiled former leader of the Maldives said Monday that this year's presidential election could be the last chance to extricate his country from increasing Chinese influence, which he described as a land grab in the guise of investments in island development.   Mohamed Nasheed told reporters in Sri Lanka's capital that current President Yameen Abdul Gayoom has opened the doors to Chinese investment without any regard for procedure or transparency.   "A large emerging power is busy buying up the Maldives,'' Nasheed said, explaining that he was referring to China.   China is "buying up our lands, buying up our key infrastructure and effectively buying up our sovereignty," he said.   China considers Maldives to be key cog in the Indian Ocean in its "One Belt One Road" project…

Australia has filed a formal complaint with the World Trade Organization that accuses Canada of placing "discriminatory" rules on the sales of imported wine. Canada is Australia's fourth-biggest wine market. Officials in Canberra say rules in Canada unfairly discriminate against overseas wine. An official protest has been lodged with the World Trade Organization (WTO) against regulations in the Canadian province of British Columbia, where wine produced locally can be sold in grocery stores but imports must be sold in a "store within a store" with a separate cash register. Canberra's objection also targets policies in other provinces, including Ontario, Quebec and Nova Scotia, as well as federal practices in Canada, which could breach a WTO agreement. They mean higher prices for foreign wines, as well as other barriers to sale,…